India Budget 2018
The much needed reforms in the industry have impacted us positively and consumer confidence is improving by the day. De-Monetization, RERA and GST have brought out changes which are a mixed bag with some positives and some ambiguity. The government would do well to ring in some changes that make taxation issues fairly clear like one window clearances or uniform tax slabs which from a customer stand point, will provide a fillip to those home buyers who have been postponing their purchase decisions due to various reasons. It would help significantly to reduce income tax rates and consequently better savings. Having said that I feel that customer buying preference would move towards those players who are well capitalized and whose construction finances have been well secured. From a builder stand point, one remains hopeful of a further reduction of GST on Under Construction projects to help accelerate demand. There should also be incentives for construction of green buildings, keeping in mind the challenges to the environment; government should offer higher FSI and exemptions to promote green sustainable developments. Very few developers are building with sustainability to keep costs low and these incentives will help build better cities.
Tushad Dubash is the Director of Duville Estates